The Federal Board of Revenue (FBR) collected a record Rs7,176 billion in the first seven months of the current fiscal year, showing strong performance in tax collection compared to Rs6,490 billion during the same period last year.
According to FBR data, average revenue growth over the last six months has remained steady at 10% to 11%. In January 2026 alone, tax collection reached Rs1,015 billion, up from Rs873 billion in January 2025.
Sales tax also contributed significantly, with Rs360 billion collected this January. This marks a 12% increase compared to Rs322 billion in the same month last year. Customs duty collections exceeded Rs642 billion, while federal excise duty contributed Rs400 billion during the period. Income tax collections stood at over Rs3,026 billion, and sales tax totaled Rs2,086 billion in the first half of the fiscal year.
Despite the strong overall growth, the FBR reported a shortfall of Rs335 billion for July–December 2025. The target for the first half of the year was set at Rs6,490 billion, but actual tax collection reached only Rs6,155 billion. In December 2025, the shortfall alone stood at around Rs25 billion.
The FBR also paid Rs292 billion in tax refunds during the first six months. Authorities noted an increase in tax return filings, from 5.2 million in the previous fiscal year to over 7 million in the corresponding period this year, reflecting improved compliance among taxpayers.
Meanwhile, the FBR took disciplinary action against six officials found unauthorizedly absent from sugar mill monitoring duties. The officials, deployed under Section 40B of the Sales Tax Act, 1990, were suspended immediately, underscoring the FBR’s commitment to transparency and accountability in tax operations.
Experts say the rise in tax collection indicates stronger compliance and enforcement measures, even as challenges remain in meeting set revenue targets. Authorities continue to focus on improving monitoring, compliance, and transparency to sustain growth in government revenue.
In other news read more about: FBR Faces Tax Collection Setback with Proposed Restructuring
